QuestionsQuestions (Republic Act No. 7966)
RA 7966 grants ABS-CBN Broadcasting Corporation the franchise to construct, install, operate, and maintain television and radio broadcasting stations in and throughout the Philippines, including related broadcast distribution services and relay stations, for commercial purposes and in the public interest, using microwave, satellite, or other means including new technologies.
The grantee’s existing and future stations must be constructed and operated in a manner that results in only minimum interference with wavelengths/frequencies of other existing stations, without diminishing its own right to use its selected frequencies and without degrading the quality of transmission or reception.
The grantee must secure the appropriate permits and licenses from the NTC for its stations and must not use any frequency without authorization. The NTC must not unreasonably withhold or delay granting such authority.
The grantee must provide adequate public service time for government access to the population on important public issues, provide sound and balanced programming, promote public participation (e.g., community programming), assist public information and education functions, conform to the ethics of honest enterprise, and refrain from broadcasting obscene/indecent content or deliberately false information/willful misrepresentation to detriment of the public interest, or from inciting, encouraging, or assisting subversive or treasonable acts.
In times of rebellion, public peril, calamity, emergency, disaster, or disturbance of peace and order, the President may temporarily take over and operate the stations, temporarily suspend operation of any station for public safety/security/welfare, or authorize temporary government use and operation of the stations upon due compensation to the grantee.
The franchise term is twenty-five (25) years from the date the Act takes effect (effectivity).
The grantee must give written acceptance to Congress within sixty (60) days from effectivity. Upon giving such acceptance, the grantee may exercise the privileges granted under the Act.
The grantee must pay a franchise tax equivalent to 3% of all gross receipts of the radio/television business transacted under the franchise. This percentage is in lieu of all taxes on the franchise or earnings thereof.
Yes. The grantee remains liable for income taxes payable under Title II of the National Internal Revenue Code pursuant to Section 2 of Executive Order No. 72, unless EO 72 is amended or repealed; any change would apply accordingly.
The grantee must file the tax return and pay the tax due to the Commissioner of Internal Revenue or authorized representatives in accordance with the NIRC; the return is subject to audit by the Bureau of Internal Revenue.
Section 9 prohibits the grantee from requiring previous censorship of speech/plays/acts or other matters to be broadcast/telecast. However, during broadcast/telecast, the grantee must cut off from the air any content whose tendency is to incite treason, rebellion, or sedition, or whose language/theme is indecent or immoral; willful failure is a valid cause for cancellation of the franchise.
The grantee must hold national, provincial, and municipal governments harmless from all claims, accounts, demands, or actions arising out of accidents or injuries (to property or persons) caused by the construction or operation of the stations.
The grantee may not lease, transfer, grant usufruct, sell, or assign the franchise or the rights/privileges under it to any person/entity without prior approval of Congress. Any transferee must be subject to the same conditions and limitations of the Act.
It requires the grantee to comply with a general broadcast policy law that Congress may enact in the future.
If any section or provision is held invalid, the other provisions not affected remain valid—so the invalidity of one part does not automatically nullify the entire law.
The franchise is subject to amendment, alteration, or repeal by Congress when the public interest requires. It also is not an exclusive grant of the privileges provided—meaning Congress may authorize others or modify access consistent with law and public interest.
It takes effect fifteen (15) days from the date of its publication in at least two (2) newspapers of general circulation in the Philippines.